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Institutional Aspects of International Competitiveness

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Institutional Aspects of International Competitiveness WORLD ECONOMY RESEARCH INSTITUTE The World Economy Research Institute (WERI), a unit of the SGH Warsaw School of Econo- mics, conducts research on the global economy and on international economic and financial relations, analyzing their impact on the Polish economy. The institute’s research focuses on the global aspects of economic development, foreign trade and foreign direct investment, as well as innovation processes and their impact on competitiveness. Selected regions of the global economy are analyzed in depth, in particu- lar the economic development of Poland and other Central and Eastern European countries, Germany, the United States and East Asian states. Research results are published in numerous books and reports and in the Working Papers series in Polish and English, which is available online at: http://kolegia.sgh.waw.pl/pl/KGS/struktura/IGS-KGS/publikacje/ World Economy Research Institute SGH Warsaw School of Economics 24 Rakowiecka St. 02-521 Warsaw, Poland tel. +48 22 564 93 70 e-mail: [email protected] http://kolegia.sgh.waw.pl/en/KGS/structure/IGS-KGS/ POLAND COMPETITIVENESS REPORT 2019 INTERNATIONAL Competitiveness IN THE CONTEXT OF DEVELOPMENT OF INDUSTRY 4.0 POLAND COMPETITIVENESS REPORT 2019 INTERNATIONAL Competitiveness IN THE CONTEXT OF DEVELOPMENT OF INDUSTRY 4.0 Edited by Arkadiusz Michał Kowalski Marzenna Anna Weresa WORLD ECONOMY RESEARCH INSTITUTE SGH WARSAW SCHOOL OF ECONOMICS Warsaw 2019 Reviewers Robert Ciborowski, Marta GÖtz Proofreading RGR Ryszard Guz-Rudzki © Copyright by Szkoła Główna Handlowa w Warszawie, Warsaw 2019 All rights reserved. Copying, reprinting and dissemination of the whole text or its parts without permission of the publisher is prohibited. First edition ISBN 978-83-8030-313-3 Oficyna Wydawnicza SGH – Szkoła Główna Handlowa w Warszawie 02-554 Warszawa, al. Niepodległości 162 www.wydawnictwo.sgh.waw.pl e-mail: [email protected] Cover design Ad Depositum Layout and typesetting DM Quadro Printed and bound by QUICK-DRUK s.c. Order no. 147/X/19 Contents Preface ................................................................... 7 PART I. THE CONCEPT OF INTERNATIONAL COMPETITIVENESS AND THE FOURTH INDUSTRIAL REVOLUTION Chapter 1. The Concept and Dimensions of International Competitiveness – Selected Theoretical Aspects ................................................ 13 Arkadiusz Michał Kowalski, Marzenna Anna Weresa Chapter 2. Institutional Aspects of International Competitiveness ................... 27 Krzysztof Falkowski Chapter 3. The Fourth Industrial Revolution and Its impact on Global Economy ....... 47 Andżelika Kuźnar PART II. COMPETITIVENESS OF THE POLISH ECONOMY IN 2010–2018 IN THE FACE OF INDUSTRY 4.0 Chapter 4. Development of the Polish Economy in 2010– 2018 Compared with Other EU Countries .............................................................. 69 Ryszard Rapacki, Mariusz Próchniak Chapter 5. Income Convergence of Poland to the Average EU Level ................. 85 Mariusz Próchniak Chapter 6. Income Inequality and Poverty in Poland in 2010–2017 in the Context of the Social Dimension of Industry 4.0. ........................................ 99 Patrycja Graca-Gelert Chapter 7. Competitiveness of Polish Industry in Foreign Trade in the Context of Industry 4.0 ............................................................. 125 Mariusz-Jan Radło Chapter 8. Significance of Foreign Direct Investment to the Digital Competitiveness of the Polish Economy ...................................................... 139 Tomasz M. Napiórkowski 6 Contents PART III. KEY FACTORS OF COMPETITIVENESS OF THE POLISH ECONOMY IN 2010–2017 IN THE CONTEXT OF THE CHALLENGES OF INDUSTRY 4.0 Chapter 9. Directions and Key Challenges of Economic Policy in Poland in the Context of the Fourth Industrial Revolution ............................................ 159 Adam Czerniak, Ryszard Rapacki Chapter 10. Significance of the Financial System in Poland in 2010–2017 in the Context of the Challenges Related to Industry 4.0 and Digital Competitiveness ........ 175 Katarzyna Sum Chapter 11. Investments and Financing the Fourth Industrial Revolution in Poland .... 189 Piotr Maszczyk Chapter 12. Development of Human Resources in the Context of the Challenges of Industry 4.0 and the Digital Economy in Poland ............................... 201 Anna Maria Dzienis Chapter 13. Changes in Total Factor Productivity in the Fourth Industrial Revolution Era ............................................................. 219 Mariusz Próchniak PART IV. DEVELOPMENT OF INDUSTRY 4.0 IN POLAND Chapter 14. Industry 4.0 State of Play and Barriers in Poland ...................... 235 Marzenna Anna Weresa Chapter 15. Challenges and Instruments of Innovation Policy in Poland in the Context of Industry 4.0 ............................................................. 247 Arkadiusz Michał Kowalski, Marta Mackiewicz Chapter 16. Digitalization of the Polish Economy and the Use of IT Innovations and Big Data by Polish Enterprises ............................................ 263 Andżelika Kuźnar Chapter 17. Poland’s Competitive Position in the Use of Digital Technology ........... 281 Andreas Bielig FINAL CONCLUSIONS Competitive Position of the Polish Economy in the Context of Digital Economy Development .............................................................. 297 Marzenna Anna Weresa, Arkadiusz Michał Kowalski Preface The global economy is witnessing dynamic changes related to the Fourth Industrial Revolution. The latest achievements in information and communication technologies (ICT) have revolutionized manufacturing and services, as well as business practices. The Fourth Industrial Revolution means another stage of revolutionary changes in the organization and control of the entire product value chain and life cycle. The digital transformation of ICT-driven manufacturing processes manifests itself in a variety of ways, including the Internet of Things, artificial intelligence, big data analytics, cloud computing, or augmented reality [Kagermann et al., 2013; Armengaud et al., 2017]. New business models emerge, new technologies gradually change the functioning of public administration. The changes translate into the competitiveness of economies and regions [Porter, Heppelmann, 2014]. Therefore, the question arises about the traditional and new dimensions of competitiveness in the era of digital economy, and their significance for Poland. Seeking an answer to this question is the leitmotif of this monograph. The aims of the analyses conducted in this book are as follows; to present the theoretical background of the issue of international competitiveness, taking into account the latest developments in science, to identify the international competitive position of Poland compared with other European Union member states, to identify the state of implementation of Industry 4.0 solutions in Polish enterprises and asses the significance of the process to the competitiveness of the economy, with special focus on the concept of digital competitiveness, to determine the priorities of economic policy, enabling Poland to take advantage of the development opportunities related to the Fourth Industrial Revolution including Industry 4.0, and improvement of digital competitiveness. The monograph consists of four parts divided into sub-chapters. The first part (Chapters 1–3), presents the contemporary definition of international competitiveness, and its traditional and new dimensions. This provides a theoretical background to further empirical analyses. Particularly noteworthy are the new approaches to competitiveness that have come up in the era of striving towards smart growth and the emergence of the so-called digital economy, while seeking to achieve social sustainability and optimal environmental protection. Research on competitiveness has expanded its 8 Preface focus to include technological, digital, socially and environmentally sustainable, and institutional competitiveness. Those considerations of a conceptual nature are complemented by an overview of the foremost manifestations of the Fourth Industrial Revolution and its consequences for the global economy. The second part of the monograph focuses on the Polish economy and its current competitive position in the European Union. The starting point is an outline of Poland’s development tendencies in 2010–2017 (Chapter 4) and an analysis of the convergence of income in Poland to the average EU level (Chapter 5). The analysis is not limited to economic growth. The following chapter discusses income disparities and poverty level in Poland, which draws reference to the social dimension of Industry 4.0 (Chapter 6). Part II ends with chapters referring to Poland’s international relations, i.e., foreign trade (Chapter 7) and foreign direct investment (Chapter 8). They show the role that international links of the economy play in transmitting achievements of the digital economy. The third part of the monograph is devoted to the main factors of the competitiveness of the Polish economy in the years 2010–2017, taking into account challenges related to the Fourth Industrial Revolution. The successive chapters analyze the Polish economic policy (Chapter 9), financial system (Chapter 10), investments and financing of the Fourth Industrial Revolution (Chapter 11), and the state and development of human resources necessary for the implementation of digital solutions (Chapter 12). The last chapter of this part sums up the analyses, depicting changes in total factor productivity in Poland
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